Tax Treatment

If your same-sex domestic partner or spouse is not qualified as your dependent as defined in Section 152 of the Internal Revenue Code, Princeton must treat as imputed income to you the value of the medical coverage provided to your partner and his/her children, and their deductions must be taken after-tax.

Effective January 1, 2012, employees, who cover in Princeton’s health plans a same-sex domestic partner not qualified as a dependent defined in Section 152 of the Internal Revenue Code, will receive a lump sum payment that will be added to the regular salary payment issued in December. This payment provides an estimated offset to the federal and FICA taxes paid by the employee to cover their same-sex domestic partner. These taxes are not paid by opposite-sex married couples.

For employees whose same-sex domestic partner or spouse does qualify as their dependent in Section 152 of the Internal Revenue Code, the IRS allows the University to treat the value of the University’s subsidy for medical benefits provided to your partner and/or your partner’s child(ren) as non-taxable income, and the medical, dental, and/or vision care premiums you pay are pre-taxed deductions. In order for Princeton to tax you properly, you will need to complete and return the Tax Certification Form to the Benefits Team.

If your partner’s status changes at any time during the year, you should notify the Benefits Team at (609) 258-3302 or benefits@princeton.edu in order to update our records. By updating your partner’s tax status, we can ensure that you are taxed correctly and the University is accurately reporting the tax status of your partner.

If you have any questions on whether you may claim your same-sex domestic or civil union partner as your dependent for tax purposes, we recommend that you consult with a tax advisor.

If you have any questions, please contact the Benefits Team at (609)258-3302.